Tax and Insurance Reserve Sample Clauses
The Tax and Insurance Reserve clause requires a party, typically a borrower or tenant, to set aside funds regularly to cover property taxes and insurance premiums. In practice, this means the responsible party makes periodic payments into a reserve account managed by the lender or landlord, ensuring that sufficient funds are available when tax or insurance bills come due. This clause helps prevent defaults or lapses in coverage by guaranteeing that these critical expenses are paid on time, thereby protecting both parties’ interests in the property.
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Tax and Insurance Reserve. (i) On each Monthly Payment Date, Borrowers shall pay to Agent a sum equal to one-twelfth of an amount which would be sufficient to pay the Taxes payable, or reasonably estimated by Agent to be payable, during the ensuing twelve (12) months to be held as a tax reserve to fund payment of future Taxes (the “Tax Reserve”). If requested by Agent (not earlier than two months prior to the date on which the next installment of Taxes becomes due), Borrowers shall also deposit, within five (5) Business Days of such request, into the Tax Reserve an amount which, together with the aggregate of deposits to be made on each Monthly Payment Date pursuant to the first sentence of this subsection (i), shall be sufficient, as of one month prior to the date on which the next installment of Taxes becomes due, to pay in full such installment of Taxes, as reasonably estimated by Agent. Agent shall apply such funds to, or (at the sole option of Agent) release such funds to Borrowers for, payment of such Taxes, provided that Borrowers have promptly supplied Agent with timely notice of all Taxes due.
(ii) On each Monthly Payment Date, Borrowers shall pay to Agent a sum equal to one-twelfth of the most recent annual insurance premiums to be held as an insurance reserve to pay for all liability and property insurance required to be to be held and maintained (the “Insurance Premiums”) by Borrowers pursuant to this Agreement (the “Insurance Reserve”, and together with the Tax Reserve, collectively referred to herein as the “Tax and Insurance Reserve”). If requested by Agent (not earlier than two months prior to the date on which the next installment of the next annual Insurance Premium becomes due), Borrowers shall also deposit, within five (5) Business Days of such request, into the Tax and Insurance Reserve an amount which, together with the aggregate of the monthly deposits to be made pursuant to the preceding sentence, shall be sufficient, as of one month prior to the date on which the next installment of the next annual Insurance Premium becomes due, to pay in full such insurance premium, as estimated by Agent. Agent shall apply such funds to, or (at the sole option of Agent) release such funds to Borrowers for, payment of such Insurance Premiums, provided that Borrowers have promptly supplied Agent with timely notices of all Insurance Premiums due.
(iii) In making any payment relating to Taxes or Insurance Premiums, Agent may do so according to any ▇▇▇▇, statement or estimate pr...
Tax and Insurance Reserve. (a) Each Borrower shall furnish the Administrative Agent with bills for the Taxes and insurance charges for which payments are required at least thirty (30) days prior to the date on which the charges first become payable. If at any time the amount on deposit with the Administrative Agent in the Tax and Insurance Reserve, together with amounts to be deposited by the Borrowers at least thirty (30) days before such charges are payable, is insufficient to pay such charges, the Borrowers shall deposit any deficiency with the Administrative Agent immediately upon demand. The Administrative Agent shall pay such charges to the extent funds are available on deposit with the Administrative Agent in the Tax and Insurance Reserve and the Administrative Agent has received a b▇▇▇ for such charges. The Administrative Agent shall have no obligation to make disbursements from the Tax and Insurance Reserve while any Event of Default exists.
(b) No portion of the funds on deposit in the Tax and Insurance Reserve shall be required to be released by the Administrative Agent as a result of or in connection with the Release of any Individual Property.
Tax and Insurance Reserve. At Closing and as additional security for the Loan, Borrower shall also establish and maintain at all times while the Loan is outstanding a reserve with Lender in an initial amount which, together with monthly anticipated payments described in this Section, will be sufficient to pay all insurance premiums and all real estate taxes on the Property when they become due (“Tax and Insurance Reserve”). Provided no Event of Default has occurred, funds shall be disbursed from the Tax and Insurance Reserve to fund taxes and insurance reserved for when the same become due and payable.
Tax and Insurance Reserve. (i) On each Monthly Payment Date, Borrower shall pay to Agent a sum equal to one-twelfth of 100% of an amount which would be sufficient to pay the real estate Taxes payable, or reasonably estimated by Agent to be payable, during the ensuing twelve (12) months to be held as a tax reserve to fund payment of future real estate Taxes (the “Tax Reserve”). At Agent’s request, Borrower shall deposit such additional amount to the Tax Reserve as required by Agent on the Closing Date to ensure that the Tax Reserve will contain an adequate amount to pay all real property taxes that will become due and owing for 2015 in respect of the Property. If requested by Agent, Borrower shall also deposit into the Tax Reserve an amount which, together with the aggregate of deposits to be made on each Monthly Payment Date pursuant to the preceding sentence, shall be sufficient, as of one month prior to the date on which the next installment of real estate Taxes becomes due, to pay in full such Taxes, as reasonably estimated by Agent. Agent shall apply such funds to, or (at the sole option of Agent) release such funds to Borrower or Property Manager for, payment of such Taxes, provided that Borrower has promptly supplied Agent with timely notices of all real estate Taxes due. In making any payment relating to real estate Taxes, Agent may do so according to any ▇▇▇▇, statement or estimate procured from the appropriate public office, without inquiry into the accuracy of such ▇▇▇▇, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. If the total amount retained in the Tax Reserve attributable to the Tax Reserve exceeds the amount of payments actually applied by Agent as set forth above, such excess may be credited by Agent on subsequent payments to be made by Borrower hereunder or, at the option of Agent, refunded to Borrower; but if the funds in the Tax Reserve attributable to the Tax Reserve shall not be sufficient to pay the sums required at least thirty (30) days before the same are due and payable, Borrower shall, within ten (10) Business Days after receipt of written demand therefor from Agent, deposit in the Tax Reserve the full amount of any such deficiency.
(ii) On each Monthly Payment Date, Borrower shall pay to Agent a sum equal to one-twelfth of the most recent annual insurance premiums to be held as an insurance reserve to pay for all liability and property insurance required to be to be held and mainta...
Tax and Insurance Reserve. After a Default or an Event of Default, if required by Administrative Agent in its sole discretion, Borrowers shall establish and maintain reserves in an amount reasonably determined by Administrative Agent to pay at least thirty (30) days prior to their respective due dates all (x) Taxes of Borrowers and (y) Insurance Premiums that are allocable to the Real Property. Such amounts will be deposited into a separate account with Administrative Agent or transferred by Administrative Agent to a Subaccount (in either event, the “Tax and Insurance Account”). Provided that no Default or Event of Default has occurred and is continuing, Administrative Agent will:
(a) apply funds in the Tax and Insurance Account to payments of Taxes and Insurance Premiums required to be made by Borrowers pursuant to Sections 2.12 and 7.5, provided that Borrowers have promptly supplied Administrative Agent with notices of all Taxes and Insurance Premiums due, or
(b) reimburse Borrowers for such amounts upon presentation of evidence of payment; subject, however, to Borrowers’ rights to contest Taxes in accordance with Section 2.12. In making any payment relating to Taxes and Insurance Premiums, Administrative Agent may do so according to any bill, statement or estimate procured from the appropriate public office (with respect to Taxes) or insurer or agent (with respect to Insurance Premiums), without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof. Notwithstanding anything in Section 3.1(a) to the contrary, if Administrative Agent at any time reasonably determines that the amount on deposit in the Tax and Insurance Account pursuant to this Section 3.6 is insufficient for its intended purposes, Borrowers shall, within ten (10) days following notice from Administrative Agent, deposit such additional sums as may be required by Administrative Agent.
Tax and Insurance Reserve. (a) Borrower shall pay to Lender on each Payment Date (a) one-twelfth of the Taxes that Lender estimates will be payable during the next ensuing twelve (12) months in order to accumulate with Lender sufficient funds to pay all such Taxes at least thirty (30) days prior to their respective due dates, and (b) one-twelfth of the Insurance Premiums that Lender estimates will be payable for the renewal of the coverage afforded by the Policies upon the expiration thereof in order to accumulate with Lender sufficient funds to pay all such Insurance Premiums at least thirty (30) days prior to the expiration of the Policies (said amounts in (a) and (b) above so deposited shall hereinafter be called the “Tax and Insurance Reserve Funds”). The account in which the Tax and Insurance Reserve Funds are held shall hereinafter be referred to as the “
Tax and Insurance Reserve. The Borrower will be required to fund a Tax and Insurance Reserve each month in an amount equal to 1/12 of the estimated annual expense for taxes and insurance. Notwithstanding the foregoing, Borrower shall not be required to fund an Insurance Reserve, provided that Borrower, throughout the term of the Loan, delivers evidence reasonably satisfactory to Lender that all premiums then due have been paid under Borrower’s blanket insurance policy covering the Property. The Borrower shall receive interest on all funds in the Tax and Insurance Reserve account.
Tax and Insurance Reserve. If requested by Beneficiary, Grantors shall create a reserve for the payment of all insurance premiums, taxes and assessments against or affecting the Mortgaged Property by paying the Beneficiary, on the first day of each calendar month prior to the maturity of the Notes, a sum equal to one-twelfth (1/12) of the estimated taxes, assessments and insurance premiums that will next become due and payable on the Mortgaged Property as reasonably estimated by Beneficiary. All such sums shall be held by Beneficiary without interest, unless interest is required by applicable law, for the purposes of paying such premiums, taxes and assessments. Any excess reserve shall, at the discretion of Beneficiary, be credited by Beneficiary on subsequent reserve payments or subsequent payments to be made on the Notes. If Beneficiary elects to credit excess reserves to subsequent reserves or note payments, Beneficiary will credit such excess first to subsequent reserves, provided there is then no event of default and no event has occurred which with notice or the passage of time could result in an event of default. Any deficiency shall be paid by Grantors to Beneficiary on or before the date when such premiums, taxes and assessments shall become delinquent. Transfer of legal title to the Mortgaged Property shall automatically transfer the interest of Grantors in all sums deposited with Beneficiary under the provisions hereof.
Tax and Insurance Reserve. A. As used herein, “Impositions” means all real estate and personal property taxes and other taxes and assessments, insurance premiums, ground rents, and all other governmental charges relating to all or any portion of any of the Properties, including, without limitation, any interest, costs or penalties with respect thereto, and charges for any easement or agreement maintained for the benefit of any of the Properties, all of any kind and nature whatsoever that at any time may be assessed, imposed or become a Lien upon any of the Properties or any portion thereof, whether general or special, ordinary, extraordinary or supplemental, foreseen or unforeseen; any and all other charges, expenses payments or assessments of any nature, if any, which are or may become a lien upon any of the Properties or any portion thereof (excluding the Senior Loan Documents); and any license fee, tax or assessment (other than Lender’s income or franchise taxes) imposed on Lender and measured by or based in whole or in part upon the amount of the outstanding Obligations.
Tax and Insurance Reserve. The Construction Budget shall contain Budget Line Items for payment of real estate taxes and Insurance Premiums (the “Tax and Insurance Reserve”). Borrower hereby authorizes Lender from time to time, for the mutual convenience of Lender and Borrower, to disburse Loan proceeds to pay real estate taxes and Insurance Premiums, to the extent then due and payable, regardless of whether Borrower shall have specifically requested disbursement of such amount. Any such disbursement, if made, shall be added to the outstanding principal balance of the Note and shall, when disbursed, bear interest at the Applicable Rate. The authorization hereby granted, however, shall not obligate Lender to make disbursements of the Loan for real estate taxes and Insurance Premiums, unless Borrower requests, and qualifies for, disbursement of the portion of the Construction Budget allocated therefor.